SMFG to maintain lending stance after Basel III

December 27, 2017

Tokyo- Sumitomo Mitsui Financial Group Inc. will not take a stricter lending stance in response to new international capital adequacy rules for major internationally active banks, known as Basel III, President Takeshi Kunibe has said.

Sumitomo Mitsui can cope with Basel III norms by expanding earnings and improving cost efficiency, Kunibe said in a recent interview.

The banking group has a goal of achieving a capital adequacy ratio of around 10 percent by the end of fiscal 2019 under Basel III norms. "We can meet the target," Kunibe said.

After examining the impact of the introduction of Basel III rules, Sumitomo Mitsui will consider taking new measures under its capital policy, including acquiring own shares, Kunibe said. He stopped short of mentioning details, including a specific timetable.

Sumitomo Mitsui plans to cut the amount of work equivalent to 4,000 jobs by utilizing artificial intelligence and other technologies to improve its productivity, Kunibe said.

The group will streamline operations at branches, Kunibe said. But he added, "We're not considering cutting branches in rural areas." Jiji Press