Sumitomo Mitsui Financial Group, Japan's second-largest bank by market capitalization, plans to expand its brokerage business outside of Japan. The bank is targeting the world's financial centers -- New York, London, Hong Kong and Shanghai.
"We are restructuring our businesses in the major overseas bases," SMFG president Teisuke Kitayama told Dow Jones Newswires.
In New York, the bank plans to bring its headcount to 70 from 27. Nikko Cordial Securities Inc., a subsidiary the bank acquired from Citigroup in 2009, will resume its brokerage and advisory businesses in New York after a break of several years.
Nikko Cordial also resumed its London operation after a 12-year break and the bank plans to grow to 120 workers from its current level of 33.
The move is in response to a saturated Japanese market and the aggressive expansion of securities businesses overseas of some of SMFG's domestic rivals, Nomura Holdings and Daiwa Securities.
Meanwhile, Japan's third-largest bank, Mizuho Financial Group, has plans to expand its operations in Asia.